Forming a limited liability company (LLC) can be a great choice for many entrepreneurs. LLCs provide their owners (members) with the best features of sole proprietorships and corporations. Like sole proprietorships, LLCs have few corporate formalities and owners are generally taxed at the personal level. Like corporations, LLC's limit the personal liability of each member and create a corporate veil between the business and its owner(s). Further, LLCs offer owners a number of options for how they can be taxed (individual, partnership, C corp, S corp) and divide business profits. While there are usually some expenses associated with setting up an LLC, the benefits this business structure can provide usually far outweigh its costs. Individuals and small business owners alike should seriously consider the LLC before accepting the unlimited liability of a sole proprietorship or formalities of a corporation.